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Entrepreneurship 101: Keys To Starting A Business
Entrepreneurship 101: Keys To Starting A Business
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Today We Will Address
• What is Entrepreneurship?
• 7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
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Today We Will Address
• What is Entrepreneurship?
• 7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
3
Famous Entrepreneurs
Oprah Winfrey Donald Trump
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Estee Lauder
Steve Jobs
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Vera Wang Russell Simmons
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Definitions of Entrepreneurship
• Creation of a new venture (Gartner, 1988)
• Change implementing innovation through the
carrying out of new combinations (Schumpeter,
1934)
• A way of thinking, reasoning, and acting that is
opportunity obsessed, holistic in approach, and
leadership balanced (Spinellli & Muller, Jr.)
• Nexus of enterprising individuals and valuable
opportunities which constitute the process of
existence, discovery, and exploitation of
entrepreneurial opportunities (Shane &
Venkataraman, 2000).
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Entrepreneurship is used to describe
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So for today, let’s define
Entrepreneurship
as starting a new business
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Today We Will Address
• What is Entrepreneurship?
• 7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
• Resources for Entrepreneurship
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Key #1: Idea Generation
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Good Entrepreneurial Business Ideas
MARKET DRIVEN
• Solve a problem
• Find a market need
• Customer focused not product driven
• Target an identified, sizeable market
segment
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Good Entrepreneurial Business Ideas
FEASIBLE
• Attractive – there is a demand
• Achievable – it can be done
• Durable – it lasts
• Value creating – it is worth something
• Safe
• Affordable for target market
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Good Entrepreneurial Business Ideas
UNIQUE
• Differentiated (vs. commodity)
• Faster
• Better
• Cheaper
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Good Entrepreneurial Business Ideas
FUNDABLE
• Revenue stream • Barriers to entry
• Manageable risk • Growth potential
• Sustainable - Market • Product pipeline
exists with frequency of • Exit plan
purchase • Innovative
• Scalable or Replicable
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Good Entrepreneurial Business Ideas
INNOVATIVE
• Radical vs. Incremental
• Innovation framework1
• Invention
• Extension
• Duplication
• Synthesis
1 Kuratko & Hodgetts (2001)
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Good Entrepreneurial Business Ideas
INTELLECTUAL PROPERTY
• Copyrights
• Trademarks
• Patents
• Trade Secrets
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Idea Generation
• Characteristics of good
entrepreneurial business ideas
• Sources of good entrepreneurial
business ideas
• Ideas to avoid
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Sources of Good Entrepreneurial
Business Ideas
• Talk to friends, family and other contacts
• Read
• Examine surroundings - consider your
– Hobbies/activities
– Education
– Work Experience
– Personal Life
• Network
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Sources of Good Entrepreneurial
Business Ideas
• Recognized needs not effectively met
• Geographic or business niches not
currently served or under served
• Changes in
• Market
• Industry
• Legal/ Political factors
• Technology factors
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Successful Entrepreneurs
recognize an opportunity
while it is still taking shape
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Idea Generation
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Ideas to Avoid
• Unfavorable industries
• Unfavorable markets
• Crusades
• An N of one
• One Hit Wonders
• Unsafe or illegal products/services
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7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
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Key #2: Funding
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Debt Funding
• Personal funds
• Family & Friends
• Credit Cards
• Bank Loans
• Federal & State Loans
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Equity Funding
• Personal funds
• Friends and family
• Business Angels
• Venture Capital
• Private Placement
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7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
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Key#3: Legal Issues
Legal structure
• Sole Proprietorship
• Partnership
• Corporation
• Limited Liability Company
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Legal Issues
Intellectual property
• What is it?
• Patent
• Copyright
• Trademark
• Trade Secret
• Who owns it?
• How is it protected?
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Legal Issues
• “Partnership” agreements
• Regulations
• Non-disclosure agreements
• Contracts
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7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
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Key#4: Marketing
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Key #5: The Business Plan
• Road map
• Comprehensive document detailing the proposed
venture
• Planning Tool describing events that may affect
proposed venture
• Used in search for funds
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The Business Plan
Contents
• Executive Summary
• Business Concept
• Industry/Market Analysis
• Operations
• Marketing Plan
• Management Team
• Risks
• Financial Plan
• Appendix
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7 Keys to Success
1. Idea Generation
2. Funding
3. Legal Issues
4. Marketing
5. The Business Plan
6. You, the Entrepreneur
7. Do your research
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Key#6: You, The Entrepreneur
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Key#7: Do your research
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Research Resources
• www.cottrellcenter.org
• www.sba.gov
• www.score.org
• www.entrepreneur.com/
• http://online.wsj.com/public/page/news-
small-business-marketing.html
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Today We Addressed
• What is Entrepreneurship?
• 7 Keys to Success
1. Idea Generation
2. The Business Plan
3. Funding
4. Legal Issues
5. Marketing
6. You, the Entrepreneur
7. Do your research
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Entrepreneurship is a journey
that begins with an idea.
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Contact Information
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